Franklin Templeton, an asset manager overseeing $1.7 trillion, has completed the regulatory registration for two new Nasdaq-listed exchange-traded funds. The company filed Form 8-A with the SEC on October 22, setting an effective date of October 27 for the launch.
The funds, Franklin US Equity Bitcoin DRIP Index ETF (FBEQ) and Franklin US Innovation Bitcoin DRIP Index ETF, utilize a 95/5 split between U.S. stocks and bitcoin. Dividends paid by the underlying companies are automatically reinvested into bitcoin rather than additional stock shares.
The FBEQ fund tracks the VettaFi US Large-Cap 500 Bitcoin DRIP Index, which includes 500 companies. The Innovation fund follows the VettaFi US Innovation 100 Bitcoin DRIP Index, focusing on the 100 largest non-financial firms on the Nasdaq.
The portfolio rebalancing mechanism caps bitcoin exposure. If the bitcoin allocation exceeds 20% between quarterly reviews, it is reduced to 4.5% within two business days. The FBEQ fund carries an expense ratio of 0.09% and is managed by Franklin Advisory Services.
The ETFs do not hold bitcoin directly on-chain. Instead, they gain exposure through existing bitcoin exchange-traded products, futures, options, or depositary receipts. This structure allows investors to accumulate bitcoin through dividend streams without managing wallets or custody.
